Competition ramps up among networks

Two of the largest broker networks now employ economists; moves that have bolstered the industry and benefitted brokers.

Following DLC’s lead, Verico has moved to better provide its brokers with the regular expert analysis of a dedicated economist — Michael Campbell.

“We’ve worked with (Campbell) for a number of years but will now expand the relationship,” Pin Luk, director of marketing and communications for Verico, told MortgageBrokerNews.ca.

According to Luk, Campbell will provide reports and videos while also speaking at future Verico events.

In his latest report for the network, Campbell is forecasting rates to remain low over the next few quarters.

“The slow economy means that there is no upward pressure on interest rates because of increased demand. There’s also no inflationary pressure pushing rates higher,” Campbell said. “In other words, there is no reason for interest rates to move up in the foreseeable future.”

According to Campbell, the country will first need to see further economic recovery outside of the housing industry before the Bank of Canada hikes its rates.

“It’s no coincidence that the two economic bright spots in the country – Vancouver and Toronto – are the major beneficiaries of international capital in search of safety,” Campbell said. “Upper end Real Estate has been the major beneficiary, which has been further spurred on by the 20% discount offer by the declining loonie versus the Chinese yuan over the last 2 1/2 years.”